Tyson Foods TSN has decided not to reinstate John R. Tyson as its Chief Financial Officer following his suspension earlier this year.
What Happened: John R. Tyson, the former CFO of Tyson Foods, will not be reinstated to his previous role at the company. Tyson Foods had placed him on suspension following his arrest for driving while intoxicated in mid-June.
On Thursday, the company announced that Curt Calaway, who had been serving as interim CFO, will now assume the position permanently. John Tyson will remain an employee on a health-related leave.
Calaway, 50, received a salary increase to $675,000 and is eligible for a potential cash bonus of $742,500 this year, along with another possible $300,000. His appointment as interim CFO was effective from June 13.
Calaway’s total potential compensation of $1.7 million is significantly lower than the $2.9 million compensation package John R. Tyson received in 2023 when he held both the CFO and chief sustainability officer roles.
John R. Tyson, the great-grandson of founder John W. Tyson, had a tumultuous tenure at the company since joining in 2019.
He became the youngest CFO in the Fortune 500 in 2022 at age 32. However, his career faced challenges, including a bizarre incident in 2022 where he was found asleep in a stranger’s bed, leading to charges of trespassing and public intoxication.
Why It Matters: The leadership shakeup at Tyson Foods comes at a crucial time for the company. In early July, Tyson Foods announced the sale of its poultry complex in Vienna, Georgia, to House of Raeford Farms as part of its strategy to optimize its plant network. This move is part of Tyson Foods' ongoing efforts to enhance profitability and streamline operations.
Additionally, the company has been scaling back its antibiotic-free beef products due to rising costs and increased regulations.
Despite these challenges, Tyson Foods reported strong third-quarter results, with beef and pork segments showing gains, although the chicken segment fell short. The company’s quarterly adjusted earnings per share of 87 cents beat the street view of 65 cents, and sales of $13.353 billion surpassed analyst expectations.
Price Action: Tyson Foods’ stock closed at $64.65 on Thursday, down 1.58% for the day. In after-hours trading, the stock slightly declined by 0.31%. Despite recent fluctuations, Tyson Foods has gained 16.42% year to date, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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